It is a known fact that professional investors have invested in cryptocurrencies at record levels. Now, hedge funds and institutional investors on Wall Street are getting into the crypto market as it finds acceptance. To get an idea of the level of investment figures, $1.14 trillion has been bought by institutional clients alone, on Coinbase. This information was published by the company and COIN saw a growth of 7.88% in 2021.
Looking back, most of the investment in crypto was done by retail investors and in Bitcoin. Most of these people did their work on exchanges that worked 24/7 and offered just BTC. This was a small and erratic market that would encounter major swings even with modest trades. A few years later, trading activity is completely different.
Retail investors are still doing their thing with crypto – the big change is that institutional investors, hedge funds and others have jumped on the crypto bandwagon. This kind of rapid growth highlights the mainstreaming effect of crypto and its growing acceptance. In 2021 alone, VC firms have invested billions of dollars in this area. This high level of investment is helping crypto exchanges offer new and exciting products. Many of these exchanges are now familiar around the world and expected to become household names soon.
Professional investors and institutions see crypto as an asset to include in a diversified portfolio. Crypto also offers better returns compared to regular asset and can be traded like any other asset with attached risk. This is one of the main reasons for BTC to trade in tandem with tech stocks and mirror changes closely. On the plus side, there are quite a few crypto offering to choose from and trading platforms to work with. All of these changes make it easy for investors to leverage their bets sensibly.